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CBN to stop sale of foreign exchange to banks by end of 2022
By Matthew Eloyi
The Central Bank of Nigeria (CBN) has disclosed that it would stop the sale of foreign exchange to banks by the end of 2022.
The CBN Governor, Godwin Emefiele, disclosed this at a briefing during the launch of the bank’s new forex repatriation scheme, RT200, held after the Banker’s Committee meeting on Thursday, in Abuja.
He said the banks must begin to source their forex from export proceeds.
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In his words, “The era is coming to an end when, because your customers need 100million dollars in foreign exchange or 200 million dollars, you now want to pack all the dollars and pass it to CBN to give you dollars.
“It is coming to an end before or by the end of this year. We will tell them don’t come to the Central Bank for foreign exchange again go and generate your export proceeds.
“When those export proceeds come, we will fund them at 5% for you and they will earn rebate. Then you can sell those proceeds to your customers that want 100 million dollars. But to say you will continue to come to the Central Bank to give you dollars, we will stop it.”
According to Emefiele, the decision is in line with the CBN’s new commitment to boost the country’s foreign reserves through proceeds from non-oil exports.
“Nigeria cannot continue to depend on FX earnings to fund its import obligations from revenue coming from earnings from products where we cannot determine both price and quantity,” he added.
